Lydia Lariba Bawa, Commissioner of Insurance, says the insurance sector is perceived as unreliable mainly because of the lack of liquidity.

Ms Bawa, who was speaking at the launch of Essien Swiss International Capital Holdings (Esich) Life Assurance, a fully-fledged life assurance company on Wednesday in Accra, said the National Insurance Commission (NIC) introduced the “no insurance, no cover policy” because of the lack of liquidity so as to save the industry.

The policy is expected to take effect from next month and would prohibit insurance companies from extending cover to any individual or business that do not pay all its premiums upfront.

Even though some industry watchers have expressed fear that the policy could deteriorate the current low insurance penetration in Ghana, the Commissioner, commented: “What we realized is that insurance companies all together are owed about GH¢130 million and this is affecting the liquidity and status of most of the companies so they are unable to pay claims.”

The Managing Director of Esich Life Assurance, Richard Adu-Marfo, in a speech, said Esich intends to revolutionize the insurance industry with well-tailored products and quality services.

“Our vision is to be the stewards of Africa’s financial liberation in fulfilling the dominion mandate. Our goal is to be the market leader by providing competitive products range that delivers value to the client and profitability to the shareholders.”

School Plan, a Esich product, is designed to help parents to fund education.

“Our Eshich School Plan guarantees the best sustainable financial solution for quality child education as it offers flexibility, convenience and stress-free payment of fees. Our plan is unique and its features allow our clients to have access to benefits within a relatively short period of two years after premiums are paid to the plan. It also offers them the option of making withdrawals a year.

Esich is a holding company of William Ato Essien, founder of First Capital Plus Limited.